Earlier telecom equipment providers used to supply only the equipments but now they are offering services also along with the equipments, thus taking over some of the activities which telecom operators used to perform in house ( Managed Services)

Now Ericsson is moving one step ahead and along with a partner is bidding for a telecom operator in Nigeria

Larger implications for firms is that their outsourcing vendor can be their competitor in future. Imagine a technology provider to a bank (such as IBM or Accenture) in future shows interest in acquiring that bank !! This is extreme danger of outsourcing !!